How a slick accounting maneuver led to a $29 billion tax bill for Microsoft::In the largest tax audit in U.S. history, the IRS rejected Microsoft’s efforts to assign profits to a small factory in Puerto Rico.
How a slick accounting maneuver led to a $29 billion tax bill for Microsoft::In the largest tax audit in U.S. history, the IRS rejected Microsoft’s efforts to assign profits to a small factory in Puerto Rico.
We should still celebrate this. For decades the IRS has been committed to the mere appearance of tax enforcement. This signifies a significant investment in corporate enforcement and hopefully has a deterrent effect.
Case in point, in this situation Microsoft originally got the IRS’ approval for this tax scheme. Only after a change in leadership and strategy did the IRS investigate. Next time we at least have hope the IRS won’t approve these schemes in the first place. It’s not perfect but it’s progress.